do i need it or do i want it

8/6/2019 Do i Need It or Do i Want It

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Lerner Publications CompanyMinneapolis

s

Jennifer S. Larson


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TO COME

Copyright 2010 by Lerner Publishing Group, Inc.

All rights reserved. International copyright secured. No part of this book may be reproduced,stored in a retrieval system, or transmitted in any form or by any meanselectronic, mechanical,photocopying, recording, or otherwise without the prior written permission of Lerner Publishing

Group, Inc., except for the inclusion of brief quotations in an acknowledged review.

Lerner Publications CompanyA division of Lerner Publishing Group, Inc.241 First Avenue NorthMinneapolis, MN 55401 U.S.A.

Website address: www.lernerbooks.com

Library of Congress Cataloging-in-Publication Data

Larson, Jennifer S., 1967Do I need it? Or do I want it? : making budget choices/by Jennifer S. Larson.

p. cm. (Lightning Bolt BooksTMExploring economics)Includes index.ISBN 978-0-7613-3914-4 (lib. bdg. : alk. paper)1. Finance, PersonalJuvenile literature. 2. BudgetJuvenile literature. I. Title.

HG179.L267 2010332.024dc22 2009027459

Manufactured in the United States of America1 BP 12/15/09

Tomypa

rents,

whot

aughtme

tobud

getwisely

eISBN: 978-0-7613-5952-4


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ContentsMoneySpending

Making Choices

WhoBudgets?

Budgets

Saving

andWants Needs

Glossarypage

30

Indexpage

32

page

4

page

8

page

26

Activitypage

28

FurtherReading

page

31

page

10

page

20

page

14


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4

MoneySpending

Did you ever get money for

your birthday? Or maybe aneighborpaid youfor raking

leaves.


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55

Did you spend your moneyright away?

How doyoudecidewhat todo withyourmoney?


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6

This girl hasfive dollars.

She couldspend it allon candy. Orshe could buy

one piece ofcandy. Thenshe might save

the rest of her

money.


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7

When

shesavesenoug

hmoney,

sheco

uldbuythiscame

ra.

Saving money can help people

afford things such as cameras,toys, or video games.


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8

ChoicesMaking

We all need to buy goods andservices. Goods are things wecan touch. We eat, wear, anduse goods.

A service is something aperson does for someone else.A haircut is a service.

This girl is pickingout marbles at atoy store. Marblesare goods.


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9

What if we dont have enough

money to buy all the goodsand services we want? Wehave to choose how to spendour money.


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10

BudgetsWe can make a budget tohelp us decide how to use

our money.A budget isa plan forspending

and savingmoney.


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11

Writing a budget helps us keeptrack of our money. It helps

us plan for the future.


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12

Families make budgets. First, the

family needs to know how muchmoney it has. When someone inthe family works at a paid job,he or she earns money. This

money is called income.

These people are atwork earning income.


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13

All the money family members

earn is income. To make abudget, a family needs toknow how much income theymake each month.

This man earns incomeby building things.


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14

NeedsandWants

Next, a family decides whatgoods and services it needs

that month. Food is a goodwe need. A place to live is aneed. Candy is not a need!

This family is looking at anew house. A home is a need.


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15

A family

must firstplan tospendmoney on

things itneeds.

This woman is lookingcarefully at hergrocery list. Whichthings from the listdoes her family need?


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This family has money left

after buying the things theyneed. How will they spendtheir money?

Families talk about howto spend their money.


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Manypeoplesharetheirmoneywithother

peoplewhoneedit.


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Family members might

spend some of their moneyon things they want.Wants are

things we

dont needto live.New carpet isa want. A

bicycle isa want.


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A family might

have to choosebetween thecarpet and

the bicycle.

How will they decide?

A new bicycle is awant. How will thisgirls family decide ifthey should buy one?


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20

SavingWhen families make a budget,they often decide to save some

money every month. Peoplesave money for thingsthey might need or wantlater.

This familyis planning avacation. Avacation is

a want thatpeople saveup for.


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Some peoplesave their

money in a jar.Other peoplesave money ata bank.

This woman istaking her childto the bank.


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Banks keep our money for us.

We can getour moneyback whenwe need it.

These boys are fillingout forms to put theirmoney in the bank.


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A family might need moneylater for an expensive carrepair. Or maybe they aresaving up for a trampoline!


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24

Do you get an allowance every

week? How will you spend yourmoney? Is there something youwant to buy now?

This boy is getting an allowance.

An allowance is money that isgiven to someone regularly.


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25

Maybe you are saving for

something to buy later.How will you budgetto save for it?

This girl is creating

a budget on acomputer.


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26

Budgets?Who

These school boardmembers are talking about

their schools budget.

Families are not the only oneswho make budgets. Schools,cities, and businesses makebudgets too. They have todecide how to spend theirmoney. They have needs and

wants, just as families do.


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27

What will

you dowith yourmoney?


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You can make your own budget. First,decide if you want to budget for a day,a week, or a month. Write the dates

youd like to budget for on the top of asheet of paper.

Next, write down your income. Thiscould include an allowance, money

you earned by doing dishes, or moneyyou got as a gift. Add your income

together to get a total.

Then, list your expenses. Expenses

might be movie tickets, money yougave to help others, or money youput in a savings account. Add yourexpenses together to get a total.

Make a Budget

Activity


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MyBudget Wee

k: Oct.5-Oct12

Income

Allowance:$4.00

Earnings:forcleaningthegarage $2.00

Other:giftfromGrandpa$3.00

Total: $9.00

Expenses

SavingsAccount: $4.50

Donationtoanimalshelter: $1.00

Tickettofunfair:$.50

Total: $6.00

Incometotalminusexpensetotal$9.00

$6.00

=$3.00

$3.00leftovertosaveorspend!

2929

Finally, subtract your expenses totalfrom your income total. The amount you

end up with is how much you have leftover to save or spend.

Heres a sample budget.


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Glossary

allowance: money that adults in some familiesregularly give to the kids

bank: a business that keeps our money for us

budget: a plan for spending and saving money

earn: to get money for work done

goods: things you can touch that can bebought and sold

income: money a person earns or receives

need: goods and services people must have to live

save: to keep money for later

service: workdone by peoplefor others

want: goodsand servicespeople do notneed to live


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3131

Further Reading

Banking Kids Pagehttp://www.bankingkids.com/pages/elem.html

Einsprunch, Andrew. What Are Budgets?Huntington Beach, CA: Teacher Created Materials,2008.

Hill, Mary. Spending and Saving. New York:

Childrens Press, 2005.Its My Life: Moneyhttp://pbskids.org/itsmylife/money/index.html

Larson, Jennifer S. What Can You Do with Money?:Earning, Spending, and Saving. Minneapolis:Lerner Publications Company, 2010.

Nelson, Robin. What Do We Buy?: A Look at Goodsand Services. Minneapolis: Lerner PublicationsCompany, 2010.


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3232

Index

allowance, 24

bank, 2122

goods, 89, 14

income, 1213, 2829

needs, 1416, 20, 26

saving, 67, 10, 2023,25, 2829services, 89, 14spending, 5, 910, 1516,18, 24, 26

wants, 18, 20, 26

Photo AcknowledgmentsThe images in this book are used with the permission of: iStockphoto.com/filonmar,p. 2; iStockphoto.com/Rich Legg, p. 4; Jose Luis Pelaez/Blend Images/CORBIS, p. 5; Image Source/Getty Images, p. 6; iStockphoto.com/216 Photo, p. 7; Todd Strand/Independent Picture Service, pp. 8, 22, 31; Julie Caruso, p. 9 ; Jutta Klee/CORBIS,

p. 10;

Norman Pogson/

StockphotoPro.com, p. 11 ;

iStockphoto.com/

Michael DeLeon,p. 12; iStockphoto.com/Mark Morgan, p. 13; Larry Dale Gordon/StockphotoPro.com, p. 14; Jon Feingersh/Photolibrary, p. 15; Kevin Cooley/Stone/Getty Images,p. 16; Purestock/Getty Images, p. 17; Avava/Dreamstime.com, p. 18; Julie Caruso/Independent Picture Service, pp. 19, 23; Ed Bock/CORBIS, p. 20; Geoff A Howard/Alamy, p. 21; John Howard/Lifesize/Getty Images, p. 24; Jurgen Falche/StockphotoPro.com, p . 25; AP Photo/Jeff T. Green, p. 26; Dave & Les Jacobs/Photoconcepts/CORBIS, p. 27; Reflexstock/BlendRF/Jose Luis Pelaez Inc, p. 30.

Front cover: iStockphoto.com/Andras Csontos (scooter), iStockphoto.com/GeorgePchemyan, (socks).


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TM

Do you plan how much money youll use tobuy candy? Or how much youll save for anew video game? Then youre budgeting!

A budget is a plan for spending and saving.Budgets help people decide how to usetheir money wisely. What do you need

to buy? What do you want? And howcan you make a budget? Read

this book to find out.

Learn all about how we earn, spend,and save in the Exploring Economicsseriespart of the Lightning Bolt BooksTMcollection. With high-energy designs,exciting photos, and fun text, LightningBolt BooksTMbring nonfiction topics to life!

Exploring EconomicsDo I Need It? Or Do I Want It?:

Making Budget ChoicesWhat Can You Do with Money?:

Earning, Spending, and SavingWhat Do We Buy?:

A Look at Goods and Services

What Is Money, Anyway?:Why Dollars and Coins Have Value

Where Do We Keep Money?:How Banks Work

Whos Buying? Whos Selling?:Understanding Consumers and Producers

do i need it or do i want it

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